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Why the future of loyalty programs will be powered by social media

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WHY THE FUTURE OF LOYALTY PROGRAMS WILL BE POWERED BY SOCIAL MEDIA September, 2011 www.SimpliFlying.com

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Methodology Based on a survey of over 200 Frequent Fliers who fly at least 5 times a year Survey by Cranfield University offline with travelers, online on SimpliFlying.com, Flyertalk.com, Airliners.net and other aviation forums Number of airlines on Twitter from EezerDataLabs Figures from 2007, ladder and descriptions adapted from Forrester’s ACTAS Q4 2006 Devices and Access Online Surveywww.SimpliFlying.com

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So why do they follow airlines in Social Media? Mostly, they just want the latest updates from the airline about either news or the latest deals and competitions.www.SimpliFlying.com

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Frequent Fliers are very active online! Compared to the average consumer, frequent fliers are much larger consumers and creators of online content!www.SimpliFlying.com

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What do they do on social media? 0% 15% 30% 45% 60% Sharing photos/videosProviding feedback and ideas Checking in to locations Writing reviews Playing games None of the above Ripe for crowd sourcing photos, videos and ideas!www.SimpliFlying.com

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Where do they look for tickets online? Almost twice the number of people are booking tickets on the airline’s website compared to those checking out tickets there!www.SimpliFlying.com

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Factors that influence the decision to fly a particular airline Reading about friends’ experiences and ability to earn points/vouchers via social media sites affect the flying decision most heavily.www.SimpliFlying.com

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We just changed the game. Again. 1. 2. 3. 4. Challenge yourself Learn how other Share and challenge Ask us how we can with one question each airlines are driving your team to incorporate help, anytime you hit aweek about your airlines business goals through an idea in your strategy. roadblock social media strategy. social media innovation. Click to The SimpliFlying iPhone App. download Download now from the App Store.

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Frequent Fliers are mostly enrolled in multiple loyalty programs! 0% 15% 30% 45% 60% 2-5 1 More than 5 None >70% are part of more than two loyalty programs!www.SimpliFlying.com

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BUT there are problems! 0% 15% 30% 45% 60% Diﬃculty in redeeming/earning points Too many conditions/restrictions Rewards which have no value Points which expire Not enough rewards Too much spam/junk mail Joining free No personalisationwww.SimpliFlying.com

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How are loyalty programs faring in the social age? Even though the first Airline Twitter account has existed for a quarter- century less than loyalty programs, the number of airlines on Twitter is larger than those with loyalty programs.www.SimpliFlying.com

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So what REALLY drives loyalty? Cheapest fare is the least important of factors like customer service, earning loyalty points and onboard experience.www.SimpliFlying.com

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Would they join a social media loyalty program? No 28% Yes A resounding yes! 72%www.SimpliFlying.com

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How would they like to earn loyalty points via social media? Check-ins and recommending the airline to a friend score the highest!www.SimpliFlying.com